Why Monopoly Game Owner Hasbro's Shares Are Diving Today

Hasbro Inc HAS shares are trading lower after the company reported fourth-quarter FY23 results.

Sales declined 23% Y/Y to $1.289 billion, missing the analyst consensus estimate of $1.355 billion.

Segment Revenue: Consumer Products fell 25% Y/Y, Entertainment segment decreased 49% Y/Y, while Wizards of the Coast and Digital Gaming increased 7% Y/Y.

Selling, distribution, and administration costs fell to $430.4 million from $666.0 million the prior year quarter.

The company reported an operating loss of $(1.20) billion versus $(125.7) million a year earlier.

Adjusted EBITDA for the quarter declined to $10.6 million from $327.2 million the prior year quarter.

Adjusted EPS of $0.38 missed the analyst consensus of $0.66.

Hasbro held cash and cash equivalents of $545.4 million and operating cash flow totaled $725.6 million as of December 31, 2023. 

The company reduced owned inventory by 51%, including a 56% decline in Consumer Products inventory in FY23.

Dividend: The company declared a quarterly dividend of $0.70 per share, payable on May 15, 2024, to shareholders of record as of May 1, 2024.

Outlook: Hasbro expects FY24 adjusted EBITDA of $925 million-$1 billion, with Consumer Products Segment revenue projected to decline 7% to 12%, Wizards of the Coast Segment revenue down 3% to 5% and pro-forma Entertainment segment revenue down $15 million.

The company raised a mid-term gross savings to $750 million by year-end 2025 from the previous target of $350 million to $400 million.

Also Read: Hasbro’s Stock Outlook Dims: Analyst Downgrades To Neutral Amid Persisting Industry Headwinds

In December 2023, the toy maker announced additional strategic steps to steer the business for future growth after a review of its cost structure and organizational design, including a revised organizational structure.

Price Action: HAS shares are down 11.4% at $45.45 premarket on the last check Tuesday.

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